Correlation Between Hamilton Gold and RBC Short
Can any of the company-specific risk be diversified away by investing in both Hamilton Gold and RBC Short at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hamilton Gold and RBC Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Gold Producer and RBC Short Term, you can compare the effects of market volatilities on Hamilton Gold and RBC Short and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hamilton Gold with a short position of RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Gold and RBC Short.
Diversification Opportunities for Hamilton Gold and RBC Short
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hamilton and RBC is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Gold Producer and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term and Hamilton Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hamilton Gold Producer are associated (or correlated) with RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of Hamilton Gold i.e., Hamilton Gold and RBC Short go up and down completely randomly.
Pair Corralation between Hamilton Gold and RBC Short
Assuming the 90 days trading horizon Hamilton Gold Producer is expected to generate 1.98 times more return on investment than RBC Short. However, Hamilton Gold is 1.98 times more volatile than RBC Short Term. It trades about 0.09 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.09 per unit of risk. If you would invest 3,480 in Hamilton Gold Producer on October 3, 2025 and sell it today you would earn a total of 103.00 from holding Hamilton Gold Producer or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Gold Producer vs. RBC Short Term
Performance |
| Timeline |
| Hamilton Gold Producer |
| RBC Short Term |
Hamilton Gold and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Gold and RBC Short
The main advantage of trading using opposite Hamilton Gold and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Gold position performs unexpectedly, RBC Short can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RBC Short will offset losses from the drop in RBC Short's long position.| Hamilton Gold vs. Hamilton Energy YIELD | Hamilton Gold vs. iShares MSCI Canada | Hamilton Gold vs. Global X SP | Hamilton Gold vs. AGFiQ Market Neutral |
| RBC Short vs. BMO All Equity ETF | RBC Short vs. TD Active Global | RBC Short vs. First Asset Morningstar | RBC Short vs. Dynamic Active Canadian |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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